Hong Kong Shares Soar On Global Outlook

Hong Kong stocks ended the Tuesday morning with healthy gains as geopolitical concerns took a back seat to a further easing of lockdowns across the world that have lifted hopes for the global economy.

The Hang Seng Index climbed 1.9 percent, to 23,381.

HSI soared more than 2 percent at one point, with analysts saying investors took some heart from comments by officials that the proposed new security law would not affect the city's judiciary, autonomy and cherished "One Country, Two Systems" policy.

But National Australia Bank's Rodrigo Catril said that while their standoff is simmering, "equity investors appear more interested in the prospect of economies reopening around the globe".

On the mainland, the Shanghai Composite Index added 0.7 percent, to 2,837, while the Shenzhen Composite Index climbed 1.6 percent to 1,779.

Tokyo ended the morning more than 2 percent higher, while Sydney, Seoul, Taipei and Wellington all climbed more than 1 percent.

Singapore also put on more than 1 percent on hopes for fresh stimulus measures by the city-state as the government warned the economy could shrink as much as seven percent this year. Jakarta added 0.8 percent.

"The positive take on the mobility data suggests fear about the coronavirus is ebbing," said Stephen Innes of AxiCorp.

"Government support during lockdowns has given many people income to spend. If anxiety is not too significant, they will rush out to shopping malls.

"Ultimately, the consumer will need to do the bulk of the heavy-lifting so confidence to get out of the house and start to live a normal life... will be critical to this recovery." (AFP)

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